Physician, heal thyself. A study the Department of Labor (DOL) did of its audits of employee benefits plans shows that the department needs to improve the quality of those audits.
In fact, such audits today are more likely to be deficient than they were a decade ago. Bloomberg BNA reports that the study showed that 39% were deficient in 2014; in 2004, the figure was 33%. Even more disconcerting: There were clean peer reviews of many of the audits that were found to be deficient.
The problem is particularly acute regarding firms that perform few audits, according to Michael Auerbach, head of the Division of Accounting Services in the DOL’s Employee Benefits Security Administration (EBSA) Office of the Chief Accountant. Speaking at a recent conference held by the American Institute of CPAs (AICPA), Auerbach said that according to the study, three-quarters of the audits conducted by firms that perform one or two per year were deficient.
EBSA head Phyllis Borzi expressed frustration at the AICPA conference. She said that despite DOL attempts to work on the matter, which she called “worthy and important,” quality still has deteriorated. She added that the study demonstrates that the DOL needs do more to encourage auditors to do a good job, and noted that current law does not afford the DOL any way to discipline auditors that do not.
What’s your take on this situation? Share your thoughts in the comment box below.
In fact, such audits today are more likely to be deficient than they were a decade ago. Bloomberg BNA reports that the study showed that 39% were deficient in 2014; in 2004, the figure was 33%. Even more disconcerting: There were clean peer reviews of many of the audits that were found to be deficient.
The problem is particularly acute regarding firms that perform few audits, according to Michael Auerbach, head of the Division of Accounting Services in the DOL’s Employee Benefits Security Administration (EBSA) Office of the Chief Accountant. Speaking at a recent conference held by the American Institute of CPAs (AICPA), Auerbach said that according to the study, three-quarters of the audits conducted by firms that perform one or two per year were deficient.
EBSA head Phyllis Borzi expressed frustration at the AICPA conference. She said that despite DOL attempts to work on the matter, which she called “worthy and important,” quality still has deteriorated. She added that the study demonstrates that the DOL needs do more to encourage auditors to do a good job, and noted that current law does not afford the DOL any way to discipline auditors that do not.
What’s your take on this situation? Share your thoughts in the comment box below.
- Log in to post comments